Growth, Distribution and Poverty in Africa. Messages from the 1990s

This paper reviews recent evidence on the trends in household well-being in Africa during the 1990s. It draws on the findings of a series of studies on poverty dynamics which utilize the better data sets now available. It begins by taking a broad view of poverty, tracing changes in both income poverty and in other more direct measures of individual welfare. Experiences have been varied: some countries have seen sharp falls in income poverty, but others have witnessed a marked deterioration in their living standards. Economic growth has in the aggregate been pro-poor. But the aggregate numbers hide significant and systematic distributional effects which have caused some groups to be left behind. The paper draws four key conclusions. The first is that economic policy reforms (improving macroeconomic balances and liberalizing markets) have been conducive to reductions in poverty. The second is that location matters for poverty reduction strategies in Africa. Some regions by virtue of their sheer remoteness have been left behind when growth picks up. The role of infrastructure (especially access to roads) is crucial. Third, education and access to land emerge as key private endowments to help households benefit from emerging economic opportunities, and enable to them to escape poverty. Finally, the evidence reviewed here underscores the significance of social protection in a poverty reduction strategy. The impact of rainfall variations and ill health are the risk factors featured as having profound effects on poverty outcomes in Africa.